Financial instruments - part 4
Taught by James Griffiths · AI tutor support included
You'll learn how to classify issued financial instruments as either equity or liability, and then measure financial liabilities under IFRS 9.
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In this lesson
- 0:00 Financial Instruments Two overview
- 1:00 Understanding issued instruments classification
- 2:36 Equity versus liability distinction
- 3:05 Financial liabilities under IFRS 9
- 4:57 Initial and remeasurement principles
- 5:55 Fair value versus amortised cost liabilities
About this lesson
This video covers the key distinction between IAS 32 (which determines whether you have a liability) and IFRS 9 (which classifies and measures that liability), using practical examples like share capital and loans. You'll discover the two measurement categories for financial liabilities—amortised cost and fair value—and how to apply them, including initial measurement at net proceeds and subsequent remeasurement rules. This is essential for Financial Reporting and Strategic Business Reporting papers, where correctly classifying and measuring financial instruments directly impacts your financial statements and exam success.
Duration: 7m
Transcript
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